Last week, Nigerian stocks gained 1.1 per cent, driven by investors’ interest in bank stocks. Most equities are overvalued at the moment, in light of the considerable appreciation (over 30 per cent) the market has witnessed year to date.
With their prices already on the high side, those stocks are not likely to appeal significantly to investors seeking value for money until market correction sets in.
The banking sector and, to an extent, the insurance industry continue to have the largest number of low-priced stocks, which implies they are on track to take the biggest slice of trade as the year progresses.
PREMIUM TIMES has assembled some stocks with fundamentals and other potential, adopting key analytical approaches to save you the hassle of randomly picking equities for investment.
The selection, a product of analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that equities will increase in value with the passage of time.
This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.
Guaranty Trust Holding Company (GTCO)
GTCO tops this week’s pick for announcing an interim dividend per share of N1 per unit for half-year 2024, twice as much as what it paid shareholders a year ago.
The financial services group’s profit after tax for the period advanced more than three times to N905.6 billion, helped by a much-improved interest income.
The price-to-book (PB) ratio of the corporation is 0.6x; its price-to-earnings (PE) is 1.1x.
AXA Mansard Insurance
AXA Mansard makes this week’s list for trading significantly below its intrinsic value, brightening its chances of good price appreciation in the future. The underwriter’s s PB ratio is 0.8x, while the PE ratio is 2.1x.
Northern Nigerian Flour Mills (NNFM)
NNFM features on this week’s list for currently trading below its real value. The manufacturer’s PB ratio is 0.9x, while the PE ratio is 5.2x.
Jaiz Bank
Jaiz Bank appears in the pick for currently trading well below its actual value. Its PB ratio is 2x, while the PE ratio is 4.2x.
NPF Microfinance Bank
NPF Microfinance Bank appears on the list for trading significantly below its real value.
The company’s PB ratio is 0.9x, while its PE ratio is 6x.
Vitafoam
Vitafoam makes the cut for currently trading below its real value and for trading close to its lowest price in 52 weeks. The company’s PB ratio is currently 1.9x, while the PE ratio is 6x.
